convert to chapter 7 or hardship dismissal

[steelgirl501]

I am starting my third year in my 5 year plan. I am in a 25% payout to my debtors

Due to reorganization of our company, I found out in December I would be losing my job.

My last day of work will be March 30th!

I am currently over the median income to file chapter 7, but after a few of months of unemployment I should fall below the state median income.

I also have read that you can file a for a hardship dismissal. At the end of year, if I
can make it that long, I will have paid into my plan 36 months.

Any thoughts or suggestions?

[lrprn]

Steelgirl, I'm so sorry to hear about the impending loss of your job The one bright spot is that you do have a few months to plan ahead and make the best overall decisions for your situation.

The first thing to do is to contact your lawyer to let him/her know about the confirmed job loss and when it will happen. During your conversation, clarify what needs to happen to convert to Ch 7 and when he/she thinks the conversion can happen. Also ask about a hardship discharge and if that's the best approach in your situation. Also be sure to ask what to expect to happen to each of the secured assets listed in your 13 once your Ch 7 is filed.

Keep us posted what you find out. Hang in there!

[steelgirl501]

Thank you so much for your input.

I only have a couple of secured assets my house and car. Car will be paid off in March of this year.

As soon as I talk with my Lawyer, I'll post her response.